The impacts of business risk and financial risk on firms' financial performance - A study of HOSE

Abstract

High economic growth rate always a good sign not only about economics but also every aspect of a country. However, high economic growth rate but limited information about economics without updating could be a source of many risks. In another manner, consider rapid economic growth rate without controlling methods like filling a balloon restlessly which could results a crisis for national economy. To prevent that, this research is necessary with the aim to measure the impact of risks which commonly shows in a company are business risk and financial risk on firm’s performance to shows the critical and important of estimate risk. From that point, companies will have manage methods to adapt or fix the impacts of risks in time to increase efficiency and profitability. The author studied from foreign researchers then apply the theory by selecting 50 companies randomly in Ho Chi Minh Stock Exchange and prove that there is a positive relationship between business risks, financial risks on firm’s performance.